What Happened?
Shares of satellite communications provider fell 12.9% in the morning session after the company reported mixed first quarter 2025 results. Revenue beat expectations by a narrow margin, though earnings beat by a more convincing amount. In addition, the number of subscribers in the broadband and voice segments fell short of expectations, raising concerns about demand. Zooming out, we think this was a mixed quarter.
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What The Market Is Telling Us
Iridium’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Iridium and indicate this news significantly impacted the market’s perception of the business.
Iridium is down 27.6% since the beginning of the year, and at $21.43 per share, it is trading 36.2% below its 52-week high of $33.57 from October 2024. Investors who bought $1,000 worth of Iridium’s shares 5 years ago would now be looking at an investment worth $933.30.
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